PAYMENTS VALUE CHAIN?IS THERE A DISRUPTION IN THE
PAYMENTS' KEY PLAYERS
VISA & MASTERCARD PLAY A KEY ROLE INTEGRATING MERCHANTS AND CONSUMERS WORLDWIDE
Source: http://www.pymnts.com/
BASIC FEE SCHEME
BEHIND A SIMPLE CARD 'SWIPE', THERE IS A COMPLEX FEE SCHEME
Source: http://www.pymnts.com/
WORLDWIDE PERSPECTIVE
GLOBAL STANDARDS COEXIST WITH LOCAL SPECIFIC BUSINESS MODELSExample
‣ up to 15%APR ‣ can be above 400%
‣ ~40%Market share of top 3 issuers
‣ ~85%
‣ 1-3 days @ 3%Time Merchants receive $
‣ ~28 days @ 3% or next day @ 5%
Other differences in Brazil
‣ +50% of transactions made in installments (the merchant will receive in installments or pay add’l 2-3% per month to anticipate
‣ Acquirers anticipate card receivables by 2-3% discount per month
MERCHANT PAYS ADDITIONAL ~2%
TO RECEIVE $ NEXT DAY
Source: author analysis
NEW KIDS ON THE BLOCK
WILL THE NEW PLAYERS REALLY DISRUPT THE PAYMENTS' ECOSYSTEM?
Source: author analysis
ENTREPRENEURSHIP OPPORTUNITIES
WHAT ARE THE OPPORTUNITIES FOR ENTREPRENEURS?
▸ How different scenarios affect the opportunities for entrepreneurs?
▸ Will EMV and NFC adoption in the US change customer behavior?
▸ How retailers will evolve in their omnichannel strategy?
▸ How fast the new players will grow overseas?
▸ How the incumbent players are reacting to the new entrants?
Source: author analysis
Recommended
